Live in Kansas, Earn Income in Kansas and Missouri + KCMO Earnings Tax

Forum|Forum|2 years ago
January 24, 2024
1 reply
0 views

Hi, I really hope someone can help me figure out this nonsense.

My employer is based in Kansas, however we do jobs in both Kansas and Missouri. On my paystubs, it shows KS pay, MO pay, and KCMO pay.

This is where I start to get irritated and confused. Obviously, I pay Kansas taxes for everything. Missouri jobs are subject to the MO witholding, regardless of where in the state of MO I do a job. KCMO wages are also separated. I am having a hard time figuring all of this out. When I used TurboTax last year, it tried to tell me that I owed KCMO the 1% Earnings Tax on ALL of my income, for the entire year, from both states. Additionally, it tried to tell me that I OWED the state of Missouri AND the state of Kansas! But that should not be the case. As a result, I did not file my state returns last year and now it is biting me in the rear. I'm attempting to figure this out for this year, and I'm running into the same headache and it literally has me so frustrated I just want to smash my computer with a hammer.

I'm sure none of this makes any sense whatsoever, so lemme just put this here as an example, from 2023:

(My pay is represented as an "Hourly" figure, and a "Footage" figure. I am a gutter installer and we do not get paid by the hour, but by footage, but this is how the accountant breaks it down on the paystubs)

KS Hourly - 18,799.80 (KS w/h 737.85)

KS Footage - 5,611.03

MO Hourly - 12,696.80 (MO w/h 673.56)

MO Footage - 3,057.90

KCMO Hourly - 4,284.40 (KCMO w/h 60.94)

Total 2023 Earnings - 44,449.93

I'm so frustrated and I don't know what to do or how to proceed and I'm about to have a nervous breakdown over all this crap and it sucks PLEASE HELP 😞

Not A Product Question

TomD8

Employee

KS can tax ALL your income, regardless of where you earned it. MO can tax only the money you earned by working in MO.
On your KS tax return, you’ll be able to claim a credit for both the MO and the KCMO tax that you paid, so in effect you won’t be double taxed.

The key for this to work in TurboTax is for you to complete your non-resident tax return first, BEFORE you do your home state tax return. Then the program can calculate and apply your credit correctly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.